Stock Transaction Assistant
A Sample Investment Portfolio
The examples in this section use Stock Transaction Assistant to illustrate a series of stock activity. The (fictitious) stock will be purchased, partially sold with a profit, will undergo a stock split, and will issue a dividend.
Initial purchase
From an empty stock register, an initial 80 shares of this stock are purchased on 1-Jan. The total value of these shares is $8,000, i.e. the share price is $100. The broker charges $9.95 for this transaction. The broker deducts $8,009.95 for this transaction.
Launch the Stock Transaction Assistant from Action > Stock Transaction Assistant, or using the toolbar.
Transaction Details
[screenshot1 - stock assistant]
Enter the date of purchase (e.g. 01-Jan) and description (e.g. Initial purchase).
Transaction Type
[screenshot2 - 2 types]
As this stock account balance is zero, only "Open Long" and "Open Short" are available. Choose Open Long.
Stock Amount
[screenshot1 - stock amt]
Enter the number of stock units purchased; in this case the amount is 80. Note the next balance of 80 units is displayed.
Stock Value
[screenshot1 - stock val]
Enter the value of stock units purchased. The 80 units stocks are valued at $8,000. Note the price of $100 per unit is shown.
Cash
[screenshot1 - cash]
Enter the cash account to fund the purchase from, and the monetary amount withdrawn. This would typically be the broker cash account. Input $8,009.95 which includes the broker fee.
Fees
[screenshot1 - fees]
Enter the expense account to tally the broker fees, and the fee amount. This would typically be an expense account. Input $9.95 as the amount.
Dividend and Capital Gains
These pages are not relevant for a stock purchase, and are automatically skipped.
Finish
[screenshot - finish]
| Account | Memo | Debit | Credit | Units |
|---|---|---|---|---|
| STOCK | $8,000.00 | 80 STOCK | ||
| Broker | Cash | $8,009.95 | ||
| STOCK | Fees | $9.95 |
The final page summarises the transaction splits, and offers to create the transaction when [Apply] is pressed. If there are any errors found, the [Apply] button will be disabled, and the previous pages may be amended by pressing [Back].
Selling stock
On 1-Feb, the share price has increased from $100 to $120 per share. You decide to some (e.g. 30 units) of the stocks owned. The total value of these shares is 30 * 120 = $3,600. The broker fee is $9.95; therefore the amount received in cash is $3590.05. These 30 units of shares sold have increased by $20, therefore the capital gains on this transaction is 30 * 20 = $600.
Launch the Stock Transaction Assistant from Action > Stock Transaction Assistant, or using the toolbar.
Transaction Details
[screenshot1 - stock assistant]
Enter the date of purchase (e.g. 01-Feb) and description (e.g. Selling stock).
Transaction Type
[screenshot2 - 2 types]
As this stock account balance is positive, several options are available. Choose "Sell"
Stock Amount
[screenshot1 - stock amt]
Enter the number of stock units sold; in this case the amount is 30. Note the next balance of 50 units is displayed.
Stock Value
[screenshot1 - stock val]
Enter the value of stock units purchased. The 30 units stocks are valued at $3,600. Note the price of $120 per unit is shown.
Cash
[screenshot1 - cash]
Enter the cash account to receive the proceeds of the stock sale, and the monetary amount received. This would typically be the broker cash account. Input $3590.05.
Fees
[screenshot1 - fees]
Enter the expense account to tally the broker fees, and the fee amount. This would typically be an expense account. Input $9.95 as the amount.
Dividend
This page is not relevant for a stock sale, and is automatically skipped.
Capital Gains
This page records the capital gains incurred in this transaction. Because the stock was sold at a profit of $600, this amount must be recorded as income. The capital gain balancing split will be recorded in the stock account.
Finish
[screenshot - finish]
| Account | Memo | Debit | Credit | Units |
|---|---|---|---|---|
| STOCK | $3,600 | -30 STOCK | ||
| Broker | Cash | $3,590.05 | ||
| STOCK | Fees | $9.95 | ||
| Income | $600 | |||
| STOCK | $600 |
The final page summarises the transaction splits, and offers to create the transaction when [Apply] is pressed. If there are any errors found, the [Apply] button will be disabled, and the previous pages may be amended by pressing [Back].
